tiprankstipranks
Trending News
More News >
Universal Display (OLED)
NASDAQ:OLED

Universal Display (OLED) AI Stock Analysis

Compare
2,129 Followers

Top Page

OL

Universal Display

(NASDAQ:OLED)

Rating:79Outperform
Price Target:
$168.00
▲(4.06%Upside)
Universal Display's overall stock score is primarily driven by its strong financial performance and positive earnings call. Although the stock is relatively expensive, the company's robust balance sheet and strategic advancements provide a solid foundation for future growth. Technical indicators show stable trends, supporting the overall positive outlook.
Positive Factors
Financial Performance
Q1 results were better-than-expected, with revenues up 1% vs. consensus -6%.
Stock Buyback
$100M share repurchase program is another positive.
Negative Factors
Revenue Forecast
Revenues in 2025 are expected to be down 1% to +8%, well below consensus +10.5% growth.
Tariff Impact
US tariffs and slow progress in blue color material commercialization are seen as new discount factors for Universal Display Corp.

Universal Display (OLED) vs. SPDR S&P 500 ETF (SPY)

Universal Display Business Overview & Revenue Model

Company DescriptionUniversal Display Corporation (OLED) is a leader in the development and commercialization of organic light emitting diode (OLED) technologies and materials. Operating primarily in the consumer electronics and lighting sectors, the company offers a broad range of OLED solutions, including proprietary technologies and high-performance materials that enhance display and lighting performance. Universal Display Corporation partners with major electronics manufacturers to integrate its OLED technologies into various devices, from smartphones to televisions and lighting products.
How the Company Makes MoneyUniversal Display Corporation generates revenue through a combination of licensing fees, material sales, and technology development agreements. The company licenses its OLED technologies to manufacturers, earning royalties based on the sales of OLED products that incorporate its technology. Additionally, Universal Display sells proprietary OLED materials, such as phosphorescent emitters, which are essential components in the production of OLED displays and lighting. Significant partnerships with leading electronics companies, including Samsung and LG, contribute to its revenue by ensuring its technologies are widely adopted in the industry. The company also invests in research and development to continually innovate and expand its product offerings, further driving its revenue growth.

Universal Display Earnings Call Summary

Earnings Call Date:May 01, 2025
(Q1-2025)
|
% Change Since: 14.67%|
Next Earnings Date:Jul 31, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted several positive outcomes, including revenue and profit growth, strategic advancements in blue phosphorescent OLED, and increased royalty and license fees. However, these were contrasted by declines in material sales, uncertainty due to tariffs, and slightly decreased gross margins. The positive developments appear to be promising for the future, but current challenges present significant concerns.
Q1-2025 Updates
Positive Updates
Revenue and Profit Growth
First quarter 2025 revenue was $166 million, operating profit was $70 million, and net income increased by more than 13% year-over-year to $64 million, or $1.35 per diluted share.
Positive Developments in Blue Phosphorescent OLED
LG Display announced successful verification of commercialization level performance of blue phosphorescent OLED panels, indicating potential future growth and market application.
Strategic Supply Chain and Manufacturing Expansion
Diversification of supply chain and expanded global manufacturing footprint, including a new facility in Shannon, Ireland.
Increased Royalty and License Fees
First quarter royalty and license fees were $74 million, up from $68 million in the prior year.
Adesis Revenue Increase
Adesis's first quarter revenue increased to $6.6 million, compared to $3.7 million in the first quarter of 2024.
Negative Updates
Decline in Material Sales
Total material sales were $86 million in the first quarter, compared to $93 million in the first quarter of 2024. Green emitter sales were $64 million, down from $71 million in the first quarter of 2024.
Uncertainty Due to Tariffs
Increased orders in April potentially due to ongoing tariff developments, indicating uncertainty in future revenue stability.
Slight Decrease in Gross Margins
First quarter cost of sales was $38 million with total gross margins of 77%, slightly down from 78% in the first quarter of 2024.
Company Guidance
During Universal Display Corporation's first-quarter 2025 earnings call, substantial guidance was provided, highlighting various financial metrics and projections for the OLED market. The company reported a first-quarter revenue of $166 million, with an operating profit of $70 million and a net income of $64 million, translating to $1.35 per diluted share. Revenue guidance for the full year was set between $640 million and $700 million. The call also projected growth in OLED smartphones by 6% to 848 million units, OLED IT units by 16% to 27 million units, and OLED TVs by 4.5% to 7.1 million units. Material sales for the quarter were $86 million, including $64 million from green emitter sales and $21 million from red emitter sales. The total gross margins stood at 77%, with operating expenses expected to remain flat year-over-year. The company ended the quarter with $918 million in cash, cash equivalents, and investments, and announced a quarterly dividend of $0.45 per share and a $100 million share repurchase authorization. The ongoing development of phosphorescent blue OLED technology was highlighted, with LG Display's announcement of achieving commercialization-level performance marking a significant milestone.

Universal Display Financial Statement Overview

Summary
Universal Display demonstrates strong financial health with high profitability, a robust balance sheet, and solid cash flow generation. The company has increased revenue while maintaining high margins, benefiting from a debt-free balance sheet, reducing financial risk. However, cash flow growth is modest.
Income Statement
85
Very Positive
The income statement reflects strong profitability with a net profit margin of 34.28% and a gross profit margin of 77.08% for 2024. Both margins indicate efficient cost management, allowing the company to retain a significant portion of its revenue as profit. Revenue growth was 12.36% from 2023 to 2024, showing a positive growth trajectory. The EBIT and EBITDA margins are robust at 36.86%, suggesting solid operational efficiency.
Balance Sheet
90
Very Positive
The balance sheet is healthy, characterized by a debt-free status as of 2024, which eliminates financial leverage risks. The equity ratio is strong at 88.20%, indicating a solid capital structure where most assets are funded by equity. The return on equity is impressive at 13.74%, reflecting effective use of shareholder funds to generate profits.
Cash Flow
78
Positive
The cash flow statement shows a significant increase in operating cash flow from $154.78 million in 2023 to $253.74 million in 2024, indicating improved cash generation from core activities. The free cash flow to net income ratio is 0.95, suggesting efficient conversion of profits into cash flow. However, free cash flow growth is slightly negative due to changes in capital expenditures.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue648.70M647.68M576.43M616.62M553.52M428.87M
Gross Profit489.70M499.22M441.05M488.72M438.53M343.39M
EBITDA270.38M282.94M260.59M309.38M269.61M194.71M
Net Income229.60M222.08M203.01M210.06M184.21M133.37M
Balance Sheet
Total Assets1.86B1.83B1.67B1.53B1.47B1.27B
Cash, Cash Equivalents and Short-Term Investments571.28M492.67M514.12M577.77M663.19M730.01M
Total Debt0.0019.14M22.86M29.04M27.26M8.75M
Total Liabilities205.16M215.81M221.74M257.45M367.00M356.51M
Stockholders Equity1.66B1.62B1.45B1.28B1.10B912.71M
Cash Flow
Free Cash Flow163.66M211.10M28.42M79.61M147.55M120.74M
Operating Cash Flow212.15M253.74M154.78M126.81M191.10M148.79M
Investing Cash Flow-42.06M-164.41M-83.29M-280.74M-457.75M391.26M
Financing Cash Flow-86.63M-82.33M-72.93M-64.64M-51.37M-41.66M

Universal Display Technical Analysis

Technical Analysis Sentiment
Positive
Last Price161.44
Price Trends
50DMA
146.70
Positive
100DMA
143.55
Positive
200DMA
158.40
Positive
Market Momentum
MACD
2.93
Positive
RSI
64.39
Neutral
STOCH
77.92
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OLED, the sentiment is Positive. The current price of 161.44 is above the 20-day moving average (MA) of 154.99, above the 50-day MA of 146.70, and above the 200-day MA of 158.40, indicating a bullish trend. The MACD of 2.93 indicates Positive momentum. The RSI at 64.39 is Neutral, neither overbought nor oversold. The STOCH value of 77.92 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for OLED.

Universal Display Risk Analysis

Universal Display disclosed 30 risk factors in its most recent earnings report. Universal Display reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Universal Display Peers Comparison

Overall Rating
UnderperformOutperform
Sector (50)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
$7.45B32.6014.58%1.15%6.13%4.70%
79
Outperform
$7.89B41.9723.87%41.03%51.42%
78
Outperform
$5.75B17.6050.29%1.08%33.52%109.68%
73
Outperform
$4.48B-6.85%20.46%39.37%
AIAI
60
Neutral
$3.30B-33.73%25.27%4.68%
LPLPL
58
Neutral
$3.37B-28.93%17.34%34.72%
50
Neutral
AU$1.48B1.44-28.24%3.27%16.24%-7.89%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
OLED
Universal Display
161.44
-54.63
-25.28%
IDCC
InterDigital
221.60
102.65
86.30%
LPL
LG Display
3.52
-1.12
-24.14%
NVMI
Nova
276.43
37.90
15.89%
AI
C3ai
25.82
-4.12
-13.76%
FRSH
Freshworks
14.75
1.88
14.61%

Universal Display Corporate Events

Executive/Board ChangesShareholder Meetings
Universal Display Holds 2025 Annual Meeting on June 18
Neutral
Jun 23, 2025

Universal Display held its 2025 Annual Meeting on June 18, 2025, where 42,727,869 votes were represented. During the meeting, the election of directors, approval of executive compensation, and ratification of KPMG LLP as the independent accounting firm for 2025 were voted upon. The election of directors saw varying levels of support for each candidate, while the advisory resolution on executive compensation received significant approval. The ratification of KPMG LLP was also largely supported.

The most recent analyst rating on (OLED) stock is a Buy with a $160.00 price target. To see the full list of analyst forecasts on Universal Display stock, see the OLED Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 03, 2025